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Court Watch

By Darryl A. Hart and Charles G. Miller

Class Action Waivers in Franchise Agreements Are Enforced

Just when everyone has been thinking that franchisors will have a difficult time enforcing class action waiver clauses, two recent cases have indicated that such clauses are alive and well. In a recent California Court of Appeal decision, Gold v. Melt Inc., Cal. Ct. App., 2d Dist., Bus. Franchise Guide (CCH) ' 14,371 (Apr. 16, 2010), certified for non-publication, a three-judge appellate panel affirmed the trial court's determination that a class action waiver contained in a gelato ice-cream franchise was enforceable. (The designation “certified for non-publication” means that the case cannot be cited as authority to any other California state trial or appellate court. However, the case is unofficially published. See, e.g., WL 1951145.)

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